On January 1, 2011, Grant Corporation issued $4,000,000, 10-year, 8% bonds at $102. Interest is payable semiannually on January 1 and July 1. The journal entry to record this transaction on January 1, 2011 is
a. Cash………………………………………….4,000,000
Bonds Payable…………………………………….4,000,000
b. Cash………………………………………….4,080,000
Bonds Payable………………………………….…4,080,000
c. Premium on Bonds Payable……………..……80,000
Cash…………………………………………4,000,000
Bonds Payable……………………………………4,080,000
d. Cash………………………………………...4,080,000
Bonds Payable……………………………………4,000,000
Premium on Bonds Payable………………………..80,000